July–September
Financial highlights
Net sales were at the previous year’s level, EUR 381.2 (381.2) million.
Adjusted EBITDA was EUR 47.1 (40.5) million, or 12.4% (10.6%) of net sales.
EBITDA increased to EUR 47.3 (39.0) million, or 12.4% (10.2%) of net sales.
The adjusted operating result improved to EUR 16.9 (11.5) million, representing 4.4% (3.0%) of net sales.
The operating result improved to EUR 17.1 (10.1) million, representing 4.5% (2.6%) of net sales.
The figures in 7-9/2020 and 7-9/2019 are not fully comparable because the operations of Aditro Logistics have been included in Posti’s financials as of April 2020, but they are not part of the financials of the comparable period in 2019.
January–September
Financial highlights
Net sales decreased by 1.2% to EUR 1,157.7 (1,171.6) million.
Adjusted EBITDA was EUR 122.4 (118.3) million, or 10.6% (10.1%) of net sales.
EBITDA increased to EUR 121.6 (107.7) million, or 10.5% (9.2%) of net sales.
The adjusted operating result improved to EUR 32.6 (31.8) million, representing 2.8% (2.7%) of net sales.
The operating result improved to EUR 29.6 (21.2) million, representing 2.6% (1.8%) of net sales.
Net debt to adjusted EBITDA was 1.8x (1.0x).
Operational highlights
The global COVID-19 pandemic has had a significant impact on Posti’s operations in 2020. While Posti’s Parcel and eCommerce business group has benefited from the growth of online shopping, the demand for traditional postal services has decreased even faster than previously due to the pandemic.
The execution of Posti’s transformation continued:
The number of addressed letters decreased by 20% (13%) in Finland.
The share of mail items covered by the universal service obligation continued to decrease and accounted for only 2.6% (3.3%) of all Posti’s mail items delivered.
The parcel volume of Finland and the Baltic countries increased by 20% (10%).
The combined net sales of Parcel and eCommerce as well as logistics businesses represented already 57% (52%) of the Group’s net sales.
Posti continued to focus on its core business by divesting, on September 2, its home care services provider Posti Kotipalvelut Oy to Stella Care Oy, where Posti became a minority shareholder.
On September 9, Posti announced its plans to change its operating model in order to accelerate the renewal of the Group’s business operations and to increase agility and productivity.
After the reporting period, on October 28, Posti and Ropo Capital announced an agreement according to which Ropo Capital will acquire the entire share capital of Posti Messaging AB in Sweden and Posti Messaging AS in Norway.
The figures in 1-9/2020 and 1-9/2019 are not fully comparable because the operations of Aditro Logistics have been included in Posti’s financials as of April 2020, but they are not part of the financials of the comparable period in 2019.
Outlook for 2020 (unchanged)
The coronavirus situation makes the macroeconomic outlook extremely difficult to predict for the full year. Posti maintains its outlook for 2020, but because of these exceptional circumstances, Posti’s full-year outlook includes a significant level of uncertainty.
As a result of the increasing market uncertainty and expected impact of coronavirus on the Finnish and global economy, Posti’s net sales in 2020, excluding possible new acquisitions and divestments, are expected to decrease from the previous year. The Group’s adjusted operating result in 2020 is expected to increase from the previous year, when the postal strike had a significant negative impact on Posti’s results.
The Group’s business is characterized by seasonality. Net sales and operating result in the segments are not accrued evenly over the year. In Postal Services and consumer parcels, the first and fourth quarters are typically strong, while the second and third quarters are weaker.